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Novae Group posted a substantially improved net profit in the first six months of 2014 despite warning on several headwinds including a challenging rating environment, low interest rates and a strong sterling.

The company made a pre-tax profit of £22.6 million compared with £11.8 million in the first half of 2013. Its gross written premiums were virtually unchanged at £362.6 million compared with £361.8 million a year earlier although it noted that this still represented growth of 6 percent at constant exchange rates.

Its combined ratio improved to 91 percent compared with 96 percent in the first half of 2013. Its net investment income was £7.4 million compared with £4.4 million and its interim dividend was up 10 percent to 6.6p per share.

Matthew Fosh, group chief executive of Novae, said: “The group produced an impressive performance in the first half of the year, delivering 6 percent organic growth and an improved claims ratio. Novae continues to deliver an improving performance despite a more challenging rating environment, low interest rates and a strong sterling. We continue to invest in the business, attracting talented people and developing new opportunities, leaving us well placed to build on the good progress we have made.”

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